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(7-10) You pay a 32% marginal tax rate. You are considering investing in one of two bonds. First, there is a tax-free municipal bond that
(7-10) You pay a 32% marginal tax rate. You are considering investing in one of two bonds. First, there is a tax-free municipal bond that pays 4.30%. There is also a corporate (taxable) bond available with the same maturity and equal risks in all other senses to the municipal bond. In order to realize the same after-tax return for you, what rate must the corporate bond yield
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